The Challenge: Using Resources Without Depleting Them
Our planet’s resources are being consumed and exhausted at an alarming rate. To tackle this issue, there has been a growing need to move away from the traditional linear model based on produce, use, and discard, and adopt a new productive model: the circular economy. This model focuses on reducing resource usage and promoting material reuse, contrasting the wasteful nature of the traditional approach.
With global resource demand on the rise and many resources not being naturally regenerated, the urgency to address overproduction is clear. By 2030, more than 9 billion people will share a planet with clearly defined physical limits.
In this context, the circular economy proposes an economic model that reduces waste, extends product lifespans, and reintegrates materials into the production cycle. It stands in stark contrast to the traditional model’s extravagance, advocating for efficiency, sustainability, and regeneration.
Can Technology Help Us?
While sustainability and technology may seem contradictory, digitalization—the integration of digital technologies into social and economic processes—can be a powerful ally for the circular economy. From sensors that track materials to reutilization platforms and AI systems optimizing production or consumption processes, digital applications open new avenues for closing product cycles and reducing waste.
Four Types of Countries, Four Levels of Circularity
To answer these questions, a recent study analyzed the 27 European Union countries, grouping them based on their performance in key areas for circular economy: production and consumption, waste management, secondary raw material use, and innovation.
- Generators: These are economies with low circular economy levels and minimal investment in recycling or innovation. Southern and Eastern European countries, like Greece, Romania, and Bulgaria, fall into this category.
- Recicladores: They exhibit good recycling levels and some innovation. Countries like Spain, Austria, and Nordic nations belong to this group.
- Realizadores: They stand out for their use of recycled materials. Belgium and the Netherlands are examples.
- Innovadores: They lead in all areas, especially innovation. France, Germany, and Italy are part of this group.
What Role Does Digitalization Play?
The study then examined each country’s digitalization level using indicators like digital human capital, technology integration in businesses, digital public services, and connectivity.
- Human Capital: Countries with more digitally skilled people have greater capacity to implement circular strategies.
- Technology Integration: Companies using technologies like big data or e-commerce tend to operate more efficiently and circularly.
- Digital Public Services: Digitalized governments simplify processes like waste management and material traceability.
Interestingly, connectivity—access to the internet—didn’t significantly differentiate countries within the EU, as access is already widespread and not a distinguishing factor.
No Circular Economy Without Digitalization
Although no direct causal relationship is established, the data shows a strong correlation: countries with higher digitalization levels tend to perform better in circular economy areas. Digitalization provides tools, skills, and platforms that enable governments, businesses, and society to advance towards more sustainable models.
What’s Next?
To accelerate the transition to a circular economy, public policies should consider this connection. Encouraging digital skills training, supporting technological innovation in businesses, and digitizing public services not only boosts competitiveness but also invests in sustainability.
Moreover, companies integrating circular principles into their strategies—supported by digital tools—can cut costs, attract talent, and differentiate themselves in an increasingly conscious market.
In summary, digitalization is not just a complement to the circular economy; it’s a fundamental condition. Advancing towards a sustainable future requires recognizing that digitalization is not optional but an essential part of the change.
